THE Driver involved in a horrific car accident that killed two Nanyang Polytechnic (NYP) students was arrested on Thursday for questioning by police.

But the Republic Polytechnic student, Phua Jia Chee, 19, was later released on bail.

Also on Thursday, the other surviving passenger of the car, 20-year-old Tan Han Leng, a second-year NYP student, was discharged from the Singapore General Hospital.

The engineering informatics student had a minor surgery for his injured left hand on Wednesday.

Phua was driving his father's Mitsubishi Lancer around midnight on Tuesday along Old Upper Thomson Road when it skidded along a snaking stretch of road that was part of the former Grand Prix track.

The vehicle went off the road, plunging about one metre downhill before hitting some trees.

Two rear seat passengers - Mr David Li, 18, and Mr Mervin Teo, 19, died in the accident.

Both were not wearing seatbelts, according to their classmate Mr Tan. Mr Li suffered head injuries and died on the spot.

He was cremated on Wednesday afternoon at Mandai Crematorium.

Mr Teo died at about 1.20am on Wednesday at Tan Tock Seng Hospital. His funeral wake is being held at the St Theresa's church in Kampung Java, and he will be cremated at Mandai Crematorium on Friday.

Their deaths had left many of their classmates in shock.

Mr Kelvin Ng, who is the manager of the engineering informatics group at NYP, said the class was scheduled to take some common tests this week, but the students were so traumatised that the school has moved them to next week or later.